Crowdfunding success stories: Crowdcube
The equity crowdfunding pioneer which raised £1.5m in just three days
As the first equity-based crowdfunding model in the world when it launched in February 2011, Startups 100-listed Crowdcube has enjoyed a series of notable achievements in its growth to date, not least the £1.5m it raised through its own site last May.
Setting a global record for investment via crowdfunding at the time, the online funding platform met its original £250,000 target within just five hours of the opportunity going live to the public, with a further £1.25m invested over 48 hours.
Established as a means to enable people to invest in “innovative” businesses in return for direct equity, Exeter-based Crowdcube had already secured £330,000 from 162 backers in an initial crowdfunding round in December 2011 and was keen to close a follow-on round.
Investors were offered a 21% stake in the business and founders, Darren Westlake and Luke Lang; a 2013 Young Gun, planned to use the funds to employ new staff members and further promote the platform, having already raised £8.2m for British businesses.
One year on, Crowdcube’s crowdfunding success has helped to fuel major expansion; it has gained authorisation from the FCA and claims to have facilitated a staggering £23m in 116 businesses to date.
Sharing the news last May, Crowdcube co-founder and chief executive, Westlake, said:
“The response from our members was truly overwhelming and really demonstrates the power of equity crowdfunding to provide a platform for people to support businesses they think are worthy of investment.”